‌‌(Z2)‌‌ Pierces Resistance At The 20-Day EMA

• RES 4: 116-11 50.0% retracement of the Aug 2 - Sep 28 bear leg
• RES 3: 115-26 50-day EMA
• RES 2: 114-31+ 38.2% retracement of the Aug 2 - Sep 28 bear leg
• RES 1: 113-30 High Oct 4
• PRICE: 112-12 @ 15:04 BST Oct 5
• SUP 1: 111-20+/110-19 Low Sep 29 / Low Sep 28
• SUP 2: 110-00 Psychological Support
• SUP 3: 109 07 3.0% 10-dma envelope
• SUP 4: 109-23+ Low Nov 30 20074 (cont)

Treasuries traded higher Monday, but have partially reversed the week’s strength into the Wednesday close. To the upside, the contract has pierced the 20-day EMA, which intersects at 113-26+. A clear break would signal scope for an extension of the current correction and open 114-31+, a Fibonacci retracement. The recovery from last week’s lows is considered corrective and is allowing an oversold trend condition to unwind. Initial support is at 111-20+, the Sep 29 low.